India’s Coal Landscape – What We Mine, Where, and Why It Matters

India’s Billion-Tonne Backbone

In a world racing toward clean energy, India quietly crossed a milestone—over 1 billion tonnes of coal mined in a single year. Behind this number is a story of energy security, industrial strength, regional development, and evolving strategy. This blog unpacks what that means, where this coal comes from, and how it powers India’s present—and future.

Introduction: A Historic Surge in Coal Output

Coal remains the cornerstone of India’s energy and industrial strategy. Even as the world shifts towards cleaner sources, India’s domestic coal production is hitting all-time highs to meet surging power and industrial demand. In FY2024–25 (ending March 2025), India’s mines have broken the 1.04 billion tonne mark — a historic milestone achieved ahead of schedule, driven primarily by expanded output from Coal India Limited (CIL) and increased activity by private and captive miners. The result is not only greater energy security but also significant import savings. This deep dive pulls together the key facts and figures on India’s coal resources, mining volumes, grade mix and usage, giving investors and policymakers a clear view of the coal sector’s scale, strengths and challenges.

Production Overview

India’s Position as a Global Coal Powerhouse

India is the world’s second-largest coal producer (after China) and consumer. It has vast coal resources – roughly 378 billion tonnes of geological reserves (mostly low-grade bituminous and lignite) – underpinning a robust mining sector.

FY2024–25 Output Milestone and Key Contributors

In FY2024–25, India’s coal production reached approximately 1billion tonnes, marking a nearly 5% increase from the 997.8 million tonnes produced in FY2023–24. CIL and its subsidiaries remain dominant, accounting for roughly three-quarters of output. In FY2023–24, CIL produced about 773.8 MT (10% higher than the prior year), while state‐run Singareni Collieries (in Telangana) added ~70 MT. The “rest” – captive mines (suppliers to steel, cement, power firms) and smaller players – contributed the balance (roughly 180–200 MT in FY24).

Production Geography – India’s Coal Heartland Production is heavily concentrated in eastern and central India. Four states alone – Odisha, Chhattisgarh, Jharkhand and Madhya Pradesh – provide roughly 80% of national output. For FY2023–24, Odisha led with ~239 MT, followed by Chhattisgarh (~207 MT), Jharkhand (~191 MT) and MP (~159 MT). Telangana (~72 MT) and Maharashtra (~69 MT) supply much of the South, while West Bengal and Uttar Pradesh contribute smaller shares.

Open Cast vs. Underground Mining

Open-pit mining dominates in these regions, enabling lower costs and higher productivity. In fact, more than 80% of India’s coal is mined in opencast projects; underground mines (chiefly in Jharia, Raniganj and several Chhattisgarh fields) supply the remaining share.

Open Cast Mining

Underground mining

Reducing Imports, Strengthening Logistics

This booming production has led to a sharp reduction in imports. India’s coal imports fell by about 8–10% in FY2024–25 thanks to stronger domestic supply and higher prices for overseas coal. India still imports some specialist grades (especially high-quality coking coal for steelmaking), but the trend is toward greater self-sufficiency. On the demand side, nearly all of the coal produced is consumed domestically. Rail networks dedicated to coal haulage and port upgrades have improved logistics, allowing faster evacuation of coal to power plants and industries nationwide.

Coal Grades

Coal Types and Calorific Value

Indian coal is mostly bituminous (medium-grade to sub-bituminous), with a sizable portion in the “low volatile” category. True high-rank anthracite is virtually absent. By energy content, much of India’s coal falls in the medium-low range: raw calorific values often average around 4,000–5,000 kilocalories per kilogram (Kcal/kg) on a gross basis, reflecting moderate heating value. Ash content tends to be high (often 30–40% for untreated coal), and moisture levels are also significant.

Coking Coal and Lignite

Coking coal (used to make metallurgical coke) is a small slice of India’s output – around 6–7% in 2023–24 – mostly from eastern coalfields like Jharia. India remains heavily dependent on imports for premium coking grades. Lignite (brown coal, low energy) is mined mostly in Tamil Nadu, Gujarat and Rajasthan; it’s about 4% of total production.

Improving Quality Through Beneficiation

In recent years, the government and mining companies have emphasized beneficiation (washing and blending) to improve coal quality. Numerous washeries treat raw coal to reduce ash and raise its calorific content before it reaches power plants. This yields slightly richer grades but also creates “washery rejects” (coal refuse) that require disposal or alternate use.

Coal-Fired Power Generation

Power generation absorbs the lion’s share of India’s coal. Over 70% of India’s electricity (and roughly 55% of total primary energy) comes from coal-fired plants. As of FY2024–25, about three-quarters of the country’s electricity continues to be coal-based, with thermal capacity planned to increase via ultra-supercritical and supercritical units.

Industrial Consumption: Steel, Cement, and More

The steel sector uses coal both directly and indirectly, and accounts for roughly 10–15% of India’s coal use. Cement plants account for another 5–7%, using coal to heat kilns and run captive power. Other industrial users – brick kilns, chemicals, textiles – collectively add another 5–10%.

Rising Demand Across Sectors

Overall, domestic demand has been rising: coal consumption (production plus net imports) grew around 6% in FY2023–24. Captive power generation and rail dispatch volumes confirm this upward trend.

Emerging Trends

Commercial Mining Surge

Since 2020, dozens of coal mines have been auctioned to private firms, ending Coal India’s monopoly. In FY2024–25, commercial/captive mining output jumped nearly 28% YoY to about 197 MT.

Exports on the Horizon

India has begun modest coal exports to neighbours like Bangladesh and Nepal, easing surplus disposal and earning foreign exchange.

Tech Upgrades and Automation

Coal India and others are investing in automation, in-pit crushing, autonomous vehicles, and dry separation. Underground mining incentives have also been launched to unlock deeper seams.

Environment and Clean Coal Push

Stricter emission norms are driving coal quality upgrades. Simultaneously, India has committed ₹85 billion to coal gasification and liquefaction—positioning coal as a cleaner industrial feedstock rather than just a fuel.

Conclusion: India’s Coal Story is Just Evolving

India’s coal sector is no longer just about extraction—it is about strategy, resilience, and transition. With record-breaking output, reduced import reliance, and a burst of commercial innovation, the sector is poised to serve as both a growth engine and a platform for cleaner industrial development.

The next chapters will test whether India can green its coal, balance its energy mix, and lead a pragmatic transition.